27-08-2007 Centrebet says it is difficult to assess the exact impact of equine influenza outbreak

The Australian online betting operator said that in the event that all horse races are cancelled and not postponed for one complete month, the ban would reduce its net profit after tax in fiscal 2008 by approximately $400,000. However, the impact could be mitigated by the potential increase in New Zealand and international horse race betting as well as by the possible increase in sports betting.

Centrebet announced today an adjusted net profit of $11.8 million for the 2007 financial year. A result achieved off the back of 26% growth in total revenue to $58.9 million, with strong growth across both wagering and gaming, and substantial improvements in earnings margins and profitability.

Managing Director Con Kafataris said the 17 per cent increase in wagering revenue to $47.1 million was underscored by a rise in the win rate from 5.4 per cent to 6.1 per cent, along with improvements in risk management controls, business intelligence tools and bookmaking management.

Wagering turnover increased by 4.4% to $776.7m as the company continued to focus on growing more profitable turnover and reducing less profitable turnover "Our efforts to target existing VIP and dormant clients were also very successful, and will be continued in FY08," added Kafataris.

The growth in poker and casino revenue of 85% to $11.9 million was driven mostly by aggressive cross-selling of gaming products to Centrebet’s non-Australian wagering customer base.

For the fiscal year 2008, Centrebet predicts double digit growth between 10 to 15 percent

"We are pressing our advantage on a number of fronts, including mobile phone betting, the Centrebet Poker and Casino games and our Affiliate Programme. We continue to refine our approach to expansion into new geographic markets, with the emphasis on super-affiliate deals to ensure low and variable cost expansion," concluded Kafataris.